Facts Behind the Establishment of Dedicated Directorate General from FBR

It has been in news now that the Revenue Division has formed a new Inland Revenue field for immovable properties to check valuations, evasion information in the property sector. It has been named as namely Directorate General Immoveable Properties (IMP). This department will act as FBR’s specialized wing for that purpose. It will deal with all the matters related to real estate and immoveable properties which is its core purpose.

The IMP Directorate General has started work immediately after its launch. The high-tech team of this department has started its task from the identification of high-end properties on sale and rent. For that purpose, it is using mainly the navigation system which has all its focus upon the real estate sector through the top real estate web portals. The FBR and IMP team will also get help from video surveys of new & upcoming real estate projects provided from authentic sources.

This special department will also be responsible for the provision of all sorts of definitions which are somehow related to the following aspects of real estate industry:

  •        Implied terms and expressions
  •        The scope
  •        Operational mechanics
  •       Procedural parameters

All this will help in maintaining this newly created tax authority for the redressal mechanism of the taxpayers. All this will be carried out with accordance to the FBR section 230F of year 2001 Income Tax Ordinance.

Organizational Structure

The Directorate General of IMP-IR has the following organizational structure:

  • DG IMP:

It will be based at Islamabad and 03 Directors IMP-IR.

  • Director IMP-IR North:

It will also be based at Islamabad, covering KPK, ICT and Civil Division of Rawalpindi, Punjab province

  • Director IMP-IR Central

It will be situated at Lahore. It shall cover the whole province of Punjab except Rawalpindi.

  • Director IMP-IR south

It will be specific for the Karachi sector covering both the provinces of Sindh and Baluchistan simultaneously.

Moreover, the Commissioners BTB Islamabad, Lahore and Karachi would be assigned the additional charges of all the above-mentioned offices. Furthermore, each of the Regional Directorate will also be based at the existing BTB Zones of Lahore, Karachi and Islamabad.

Legal Functions and responsibilities of the Directorate General IMP-IR

In addition to the responsibilities assigned to that special department through section 230F, it shall also act as a specialized agency for FBR on all the matters which are related to the Real Estate/Immoveable properties. Some of these are as follows:

  •        Open plots
  •        Constructed properties both Residential, Commercial & Industrial
  •        Agricultural lands
  •        Housing Schemes and other such technically similar assets.

According to the respective jurisdictions, Real Estate classifications would be as follows:

  • Office Building:

These would include the Urban and suburban high-rise buildings. Skyscrapers and single tenanted/multi tenanted buildings would also be considered in this section.

  • Retail:

This section will include the classification of properties which include the restaurants and food outlets-multi-tenanted along with the stand-alone buildings.

  • Industrial:

As is obvious from the name, it will comprise the Industrial buildings which mostly house all sorts of industrial operations.

  • Multifamily:

It will cover all the residential apartments, condos, co-ops, and townhomes etc. The student and seniors housing will also fall under that category.

  • Hotels:

This sector shall cove those specific establishments which are providing accommodations and meals for travelers and tourists.

Geo mapping:

May be this is the most significant feature in terms of properties and real estate which will be carried in the following ways:

Digitalization of all sorts of property mapping. Geo-referencing will also be a part of it based on digitized survey of immovable properties.

It will also be well equipped with Photogrammetric technology. It is a latest method of mapping totally based upon aerial and drone equipped information. It will indirectly help in the following features:

  •        Input to IR Policy and Operations wings with reference to real estate sector.
  •        Survey and market analysis of real estate Market Segments.
  •        Real Estate financing and insurance.
  •        Tracking of immoveable properties for online marketing purposes.
  •        Mapping of rented properties
  •        Tracking operations of foreign based real estate concerns.
  •        Real Estate metrics to gauge the health of the real estate sector.
  •        Linkages with provincial Revenue & Excise authorities.
  •        Development of SOPs.

DG IMP will also have the authority to deal with tools & documentation with special emphasis upon the taxation regime. It will also deal with the forensic analysis of tax evasion in real estate, pilfer aging in withholding tax collection for the real estate associated transactions.


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